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T V Parasuram
Washington, Mar 4: The International Monetary Fund (IMF) has said it is unwilling to give Russia the much-awaited loan package for bailing out the country's battered economy as it remains unimpressed by Moscow's economic strategy.
Expressing dissatisfaction with the Russian government's economic initiatives, IMF managing director Michel Camdessus said: "We are not satisfied with what we see. It would be a disservice to Russia to give them loans on complacent terms. We will not do that."
The IMF chief said "He remains unimpressed by the economic strategy of the Russian government" after addressing the institute of international bankers here on Tuesday.
Meanwhile, Russian deputy prime minister Yuri Maslyukov said from Moscow that "Camdessus is so eager to score an easy victory and make us do what is totally unacceptable for us that he is applying all sorts of pressure, and this is simply inappropriate."
"Russia's road to the market has been very short, and some had no time to set up certain vital institutions. They should thank us rather than be surprised that we don't surrender," he added.
Russia is scheduled to repay 4.6 billion dollars to the IMF this year but is believed to be unable to do so. At the same time, Moscow is seeking new international loans to cover its obligations.
The IMF suspended periodic disbursement of 22.6 billion dollar aid package to Russia after Moscow devalued the rouble and defaulted on a high interest bond issue on August 17.
More recently, the Washington Post noted, the IMF has described the Russian budget as "unrealistic" and urged Moscow to move aggressively towards structural reforms and financial discipline before any new lending would be considered.
Further aid is expected to be a major theme as prime minister Yevgeny Primakov is expected to visit Washington in three weeks.
Meanwhile, a committee of 19 foreign creditors' split over whether to accept Russia's terms for paying off on short-term bonds on which it defaulted in August.
Russia's foreign debt payments total 17.5 billion dollars (16 billion euro's) this year. Little more than half of that has been written into Russia's budget leaving the government and its creditors to hope that IMF money will make up the rest.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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